Philippine Bar review · Question

Practice question: Liquidated Damages

Multiple Choice Medium

Practice question

A valid contract sets P20,000 as liquidated damages for a specified missed delivery. The breach occurs and all requirements for the clause are established; no reduction ground is shown. The debtor objects only that actual loss was not computed through receipts. Is that objection alone decisive?
  1. No, exact actual-loss proof is not invariably required for the applicable agreed damages
  2. Yes, liquidated damages can never be recovered without that calculation
  3. Yes, the written clause becomes a gift
  4. No, because the creditor can claim any unrelated amount
  5. Yes, because breach is irrelevant

Legal references

  • Civil Code Articles 1228–1229, 2216 and 2226–2228: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html

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